What is the huge loss that the Indian Jute sector has suffered and why?

One of India’s oldest industrial sector based out of Eastern India, the Indian jute sector, suffered notional losses of Rs.1,500 crore. This was largely due to hessian bag orders worth 4.81 lakh bales getting diluted in favour of plastic packaging materials for foodgrain packaging.

This is notwithstanding the support provided by the centre to the Jute sector. In this case, the millers have not been able to supply that quantity of packaging material due to supply chain problems. As per extant rules, 100% of foodgrain and 20% of sugar has to be mandatorily packed in jute bags only. Unfortunately, the current ceiling for input prices are impractical and lower than market reality in current conditions.